Follow the latest analyses and key economic, financial, and global market news in this section. Our team reviews the most important market events daily and provides comprehensive insights for traders and enthusiasts.
Former Bank of Japan Deputy Governor Masazumi Wakatabe said the central bank could raise interest rates if inflation expectations continue to rise and push up underlying price pressures, but warned that another hike this year would be hard to justify given weak economic momentum.
In an interview with Reuters, Wakatabe—long seen as a monetary policy dove—endorsed the BOJ’s cautious approach to normalisation, saying rate hikes should depend on steady economic improvement and a sustainable path to the 2% inflation target. He pointed to soft data, a stagnating labour market, and the risk of negative third-quarter GDP, suggesting little case for tightening at the December policy meeting.
While noting the BOJ must coordinate closely with the government of incoming prime minister Sanae Takaichi, he said the bank need not keep rates low simply to finance fiscal spending. “If inflation expectations rise and push up underlying inflation, the BOJ can raise interest rates — it needs to do so to prevent overheating,” he said.
Wakatabe, who served as deputy governor until 2023 and remains close to Takaichi, said the bank has made no commitment to a specific timetable for further hikes. The yen recently hit an eight-month low after markets interpreted Takaichi’s leadership win as reducing the likelihood of near-term tightening.
This article was written by Eamonn Sheridan at investinglive.com.
People’s Bank of China USD/CNY reference rate is due around 0115 GMT.
The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.
How the process works:
This article was written by Eamonn Sheridan at investinglive.com.
Australian Melbourne Institute survey of consumer inflation expectations for October 2025 4.8%
The latest figure of 4.8 % is up slightly from 4.7 % in September.
Historically, inflation expectations in recent years generally fluctuated in the 3–5 % range, so 4.8 % is toward the upper end of recent norms, though not unprecedented.
The fact that expectations are rising — rather than continuing a downward descent — suggests households may be becoming more alert to persistent inflation pressures.
—
Higher expectations make it harder for the Reserve Bank of Australia (RBA) to anchor inflation expectations, potentially reducing its flexibility to ease rates.
If consumers expect inflation near 5%, that may influence wage demands, pricing behavior, and cost-of-living adjustments.
—
This is a monthly survey run by the Melbourne Institute (University of Melbourne)
It is part of a broader Macroeconomic Reports series that also covers wage expectations, consumer sentiment, and other indicators.
This article was written by Eamonn Sheridan at investinglive.com.
Senate Majority Leader John Thune said he is considering bringing full-year appropriations bills — including legislation to fund the Pentagon and military pay — to the Senate floor for a vote, as bipartisan talks on a short-term funding measure remain stalled.
Via Axios:
With negotiations over a temporary stopgap bill frozen, Thune is weighing alternative approaches to end the government shutdown, though they would likely prove slow and complex.
Passing a bundle of spending bills like the one the Senate advanced earlier this year would require unanimous consent, making it procedurally difficult. However, Thune could instead move ahead with individual appropriations bills that have already cleared the House, such as the Defense funding package, to reopen parts of the government incrementally.
This article was written by Eamonn Sheridan at investinglive.com.
End of content
End of content